New Jersey Provides Guidance on Remote Seller Rules

In the wake of the U.S. Supreme Court Ruling in Wayfair v S. Dakota which will impact nearly all dealers, the New Jersey Division of Taxation has provided additional guidance to remote sellers (dealers from states other than New Jersey) including a list of answers to frequently asked questions.

New Jersey has issued guidance on how dealers from other states can comply with New Jersey’s remote seller rules.

In the wake of the U.S. Supreme Court Ruling in Wayfair v S. Dakota which will impact nearly all dealers, the New Jersey Division of Taxation has provided additional guidance to remote sellers (dealers from states other than New Jersey) including a list of answers to frequently asked questions. The guidance advises taxpayers that taxpayers that make all of their sales through marketplace facilitators may request to be placed on a nonreporting basis to file sales tax returns by filing Form ST-6205-ST.

The frequently asked questions advise that when calculating the $100,000 threshold, all sales delivered into New Jersey are included, including nontaxable retail sales. The FAQs also advise that for remote sellers, there is a grace period for registering to collect the sales and use tax that runs from 30 days from the time that the remote seller first exceeds $100,000 in sales to New Jersey.

 

If the remote seller meets the economic threshold in 2019, the remote seller is required to collect sales tax for the remainder of 2019 and 2020. If the remote seller does not meet the economic threshold in 2019, the remote seller is not required to collect sales tax until the economic threshold is met. Once the threshold is met, the tax collection obligation continues for that year and the next year.

If dealers have specific questions about the impact of these tax reform provisions or others for their dealership, they are encouraged to contact EDA’s trusted industry tax expert, Rex Collins of HBK at 317.504.7900 or RCollins@hbkcpa.com